The OMERS Sponsors Corporation (SC) has announced OMERS 2009 contribution rates.
“All the new rates better reflect the value of OMERS benefits being earned,” said OMERS SC Co-Chair Marianne Love.
Beginning with the first, full pay in 2009, the rates will be as follows. For comparison, we have also listed the current contribution rates.
|
|
|
2008 |
2009 |
|
Normal retirement age 65 members
|
On earnings up to CPP earnings limit |
6.5% |
6.3% |
|
On earnings over CPP earnings limit |
9.6% |
9.5% |
|
Normal retirement age 60 members
|
On earnings up to CPP earnings limit |
7.9% |
7.7% |
|
On earnings over CPP earnings limit |
10.7% |
12.8% |
|
CPP earnings limit in 2008 is $44,900 |
On a paycheque level, members will notice the following changes in 2009:
Normal retirement age 65 (most OMERS members)
|
Total annual earnings example |
2008 contributions |
2009 contributions |
Difference per pay* |
|
$40,000 |
$100.00/pay |
$96.92/pay |
($3.08) |
|
$60,000 |
$168.00/pay |
$163.97/pay |
($4.03) |
|
$80,000 |
$241.85/pay |
$237.05/pay |
($4.80) |
Normal retirement age 60 (most OMERS police officer and firefighter members)
|
Total annual earnings example |
2008 contributions |
2009 contributions |
Difference per pay* |
|
$40,000 |
$121.54/pay |
$118.46/pay |
($3.08) |
|
$60,000 |
$198.57/pay |
$207.31/pay |
$8.74 |
|
$80,000 |
$280.88/pay |
$305.77/pay |
$24.89 |
|
*Based on 26 pay periods annually and the 2008 CPP earnings limit |
A recent contribution rate study by OMERS actuaries determined that the cost of benefits being earned by normal retirement age 60 members has risen compared to earlier forecasts (and relative to the costs of normal retirement age 65 members).
The key factor causing the increased rates for normal retirement age 60 members was projected earnings increases that were higher than originally forecast in previous actuarial studies. These increases include contractual, promotional and retention pay incentives in the police and fire sectors.
“The Sponsors Corporation is committed to ensuring that contribution rates are equitable, and that they fairly represent the cost of OMERS benefits,” added SC Co-Chair Brian O’Keefe.
For more information, please refer to OMERS online FAQs.
